The Term Opportunity Cost Refers to the

question 60

Multiple Choice

The term opportunity cost refers to the

• A)value of what is gained when a choice is made.
• B)difference between the value of what is gained and the value of what is forgone when a choice is made.
• C)value of what is forgone when a choice is made.
• D)direct costs involved in making a choice.

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Definitions:

Gross Profit

The difference between the revenue a company earns from selling goods or services and the cost of goods sold.

Financial Statements

Reports that provide an overview of a company's financial condition, including the balance sheet, income statement, and statement of cash flows.

Cash Discount

A deduction from the stated price of goods or services offered to buyers as an incentive for early payment.

Credit Terms

Conditions under which credit is extended by a lender to a borrower, including interest rates, repayment schedule, and other stipulations guiding the borrowing.